Egg Works, a group of locally operated Las Vegas restaurants, alleges that their insurance company, Acuity, unfairly denied their insurance claim for losses related to COVID-19 restrictions.

According to the coronavirus class action lawsuit, Egg Works employs 400 in the Las Vegas and Henderson areas in mainly family-oriented breakfast and lunch establishments.

The restaurants are allegedly covered by an “All Risk” policy through Acuity, a Mutual Insurance Company, based in Wisconsin. The plaintiffs say the all risk policy means that “all risks of physical loss or damage are covered unless specifically and unambiguously excluded.”

In addition, Egg Works claims that it purchased general liability, automobile, excess liability, and “Bis-Pak Liability” through the company. These policies were intended to protect Egg Works from losses related to business interruption.

Have you filed an insurance claim for business interruption due to COVID-19 restrictions but were denied? Get legal help here.

Egg Works alleges in its coronavirus class action lawsuit that it expected Acuity to cover losses it experienced due to the business interruption it experienced when Nevada’s governor issued a Declaration of Emergency Directive in the face of the growing coronavirus pandemic that has swept the nation and the world.

That directive closed all nine of Egg Works’ locations, along with many other businesses deemed “non-essential.” The directive was extended until April 30, 2020.

“This suspension, which is ongoing, has caused Plaintiff to suffer significant losses and incur significant expenses,” states the coronavirus class action lawsuit.

According to the Egg Works class action lawsuit, the Acuity policies purchased by Egg Works specifically covers the types of losses the business has and will continue to experience as COVID-19 restrictions remain necessary to stem the tide of the pandemic.

“Under the Policy, Plaintiffs have paid substantial premiums to Defendant, and in turn Defendant promised to pay these losses and expenses and are obligated to pay for them,” contends the Egg Works class action lawsuit against Acuity.

However, “Defendant has breached the terms of the Policy and have failed to pay for these losses and expenses. Defendant has refused to pay these losses and expenses,” according to the complaint.

Egg Works seeks to represent other businesses who bought the same policies from Acuity, but were denied insurance claims due to coronavirus restrictions.

The Egg Works class action lawsuit accuses the insurer of breach of contract and of good faith and fair dealing.

The plaintiff is seeking restitution and damages for Egg Works and on behalf of all Class Members.

Additionally, the plaintiff is seeking a court declaration about the provisions of Acuity’s insurance policies, including “the provisions concerning the business income coverage, extra expense coverage, and civil authority coverage.”

According to local news source Fox 5, the restaurant chain was “forced to file a lawsuit against two insurance companies” over alleged refusals to cover their losses related to COVID-19 closures.

The plaintiff has also filed a business interruption class action lawsuit against a second insurance company, U.S. Specialty Insurance/Tokio Marine, for allegedly improperly denying the company’s claims under its restaurant recovery policy.

“I’ve built this restaurant chain from the ground up and invested my life’s blood into its success,” the owner of Egg Works told Fox 5 reporters.

“This insurance was bought to best position the Egg Works to resume normal business operations as soon as possible. If I am forced to close up shop it impacts not just my customers but 100s of local jobs. It’s the same all through Nevada. Insurance companies are paid substantial premiums by their insurers to be there for businesses and save jobs of hardworking wonderful people. It’s offensive these insurance companies are not meeting their obligations.”

COVID-19 restrictions have affected businesses across the nation with government mandated closures and public safety provisions that encourage consumers to stay inside.

In turn, a number of companies have reported that their claims for business interruption due to the coronavirus have been denied by their insurance companies.

Of course, the coronavirus has affected consumers in many other ways. Top Class Actions has been working to develop a comprehensive coronavirus legal guide detailing the numerous ways the outbreak is contributing to legal action around the country.

The plaintiffs and proposed Class Members are represented by Gregg A. Hubley, Mike Arias, Alfredo Torrijos, and Christopher A.J. Swift of Arias Sanguinetti Wand & Torrijos LLP and Alan Brayton, Gilbert Purcell, James Nevin, and Andrew Chew of Brayton Purcell LLP.

The Egg Works Business Interruption Insurance Class Action Lawsuit is Egg Works Holding Company LLC, et al. v. Acuity A Mutual Insurance Company, Case No. 2:20-cv-00748, in the U.S. District Court for the District of Nevada.

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